market overreaction, page-42

More thoughts on Gretel: something with the news on this well doesnt smell right to me. We have a well with no oil shows after 25% of the frac fluid has been recovered, and the conclusion from the company is that it has suddenly realised it is on the wrong side of the Brockton fault, despite only a mile away the Abercrombie well is happily flowing 400-600 bopd.

Yet a few months ago (many months ago now actually), we had Defender which didnt flow any oil until at least 25% of the frac fluid was recovered - the company didnt seem in a rush at that time to call Defender a dud at all, yet now it seems quick to write Gretel off!

Its been mentioned a couple of times by others, but we have not seen the company publish an IP rate for any of these wells. Aus 2 has produced 2600 bo over 16 days and no effort even to offer a calculation that that is an average of 157 bopd.

Why are investors put in the position that we have to calculate, extrapolate, investigate, figure out, what is happening with our wells when it seems obvious that it is possible to communicate whats happening so much better?!?

I dont know whether the negative tone to the announcement is deliberate or not, but if its not deliberate then its just very very poor communication to investors and the market. And right now that poor communication makes the company's operational performance look really poor, it makes its assets look like duds, and as a consequence it makes management look very poor. Management need to take responsibility for that.

The company has only $30M cash left to turn things around. Imo if it takes longer than that and the company comes asking for more money from investors, its going to be in trouble because who would put more in based on this performance, this communication?

Its time to clear things up TB - right now investors in the company need a clear picture of whats happening, no double-talk.

Sharks.